EACH stresses resilience of European CCPs

The main European trade body for clearing
houses has added its voice to the debate over clearing house
safety by arguing that Europe’s central
counterparties (CCPs) are already resilient.

The European Association of CCP Clearing
Houses (EACH) has stressed the resilience of European central
counterparties in a response to resolution planning proposed by
the Financial Stability Board earlier this year.

EACH argued the event that would most
likely result in a central counterparty being placed into
resolution is the simultaneous default of multiple large
clearing members, surpassing any scenario that regulators
define as "extreme but plausible".